Energy firm American Midstream Partners to acquire assets in Mobile County after selling $200 million in stock

MOBILE, Alabama -- American Midstream Partners, a Denver-based energy company, will acquire a bundle of assets that support onshore gas production from a competing company, adding to its presence in several Gulf Coast states.

The company will purchase a number of assets from an affiliate of DCP Midstream, including Mobile Bay, a gas processing plant in Mobile County; a gas gathering and transmission system to move the product from the processing plant; and a 67 percent interest in the Main Pass Oil Gathering System.

The deal is worth about $115 million, officials with American Midstream Partners said in a news release. The sale of the assets is expected to be complete in August 2014, but must first be cleared under the Hart-Scott-Rodino Act and other regulatory approvals.

The acquisition will be funded through the private placement of American Midstream common units. The company announced an agreement to sell $200 million in stock to a group of institutional investors.

Steve Bergstrom, American Midstream's chief executive, said the purchase will complement its facility in southeast Louisiana and improve the company's capability to compete for shallow-water and deep-water drilling in the Gulf of Mexico.

"Drilling and permitting activity in this region of the Gulf continues to increase after the end of the drilling moratorium, and we are well positioned to capture incremental volume," Bergstrom said in a released statement.